Abercrombie & Fitch Co. (NYSE: ANF) Fiscal First-Quarter Earnings Preview

• Earnings per Share (EPS) is expected to be $1.36, marking a significant decrease from the previous year's $2.14.
• Revenue is projected to rise to $1.06 billion, indicating a 3.7% increase from last year despite challenges.
• The company's price-to-earnings (P/E) ratio is approximately 6.50, suggesting a relatively low market valuation.

Abercrombie & Fitch Co. (NYSE:ANF) is a well-known American retailer specializing in casual wear. The company is set to release its fiscal first-quarter earnings on May 28, 2025. Analysts expect earnings per share (EPS) to be $1.36, a significant decrease from the previous year's $2.14. Despite this, revenue is projected to rise to $1.06 billion, a 3.7% increase from last year.

The anticipated decline in EPS, down 36.5% from the previous year, is a concern for investors. This drop is attributed to cost pressures and potential tariff risks, which are affecting the company's profitability. Despite these challenges, the revenue growth of 4% to $1.06 billion indicates some positive momentum in sales.

Abercrombie & Fitch's financial metrics provide insight into its market valuation. The company's price-to-earnings (P/E) ratio is approximately 6.50, suggesting a relatively low market valuation of its earnings. The price-to-sales ratio of 0.70 indicates that investors are paying 70 cents for every dollar of sales, reflecting a cautious market sentiment.

The company's enterprise value to sales ratio is around 0.74, showing its total valuation relative to sales. With an enterprise value to operating cash flow ratio of approximately 5.16, ANF appears to be generating cash flow efficiently. This efficiency is crucial for maintaining operations amid cost pressures and tariff risks.

Abercrombie & Fitch's financial health is further supported by a debt-to-equity ratio of approximately 0.71, indicating a moderate level of debt. The current ratio of about 1.48 suggests that the company has sufficient liquidity to cover short-term liabilities, providing some reassurance to investors amid the earnings decline.